Oligopoly

Based on the 2002 Economic Census, the assiduousness ratios for the following industries: runny milk (311511) is 42.6%, womens and girls excuse & orient dresses (315233) is 21.6%, envelopes (322232) is 51.1% and electronic computers (334111) is 75.5%. The four-firm tightness ratios is calculated by adding the total gross sales of the top four firms in the industry and divide by the total. In the text book it defines the concentration ratio as The sh ar of industry output in sales or employment accounted for by the top firms (Case, ordinary & Oster, 2009 p. 285). Using the concentration ratio differentiate the sales between industries.
The industry that is characterized by a high level of rivalry in consonance to the data retrieved from the 2002 Economic Census would be the womens and girls cut and sew dress manufacturing, because of its concentration ratio of 21.6%. Having the lowest concentration ratio would mean that in that location are a handle of competition and a lot of struggle to stay inside the market.



The monopolistic competitors would see an opportunity to join the market ground on this industry low sales and that also creates more than competition. Firms that differentiate their products in industries with many producers and free entry are called monopolistic competitors. (Case, Fair & Oster, 2009 p. 262). Both oligopoly and monopolistic have competition involved but the difference between these two is that maven has a small number of large firms and the other has a large number of small firms. An oligopoly is an industry in which there is a small number of firms, each large full to have an impact on the market price of its outputs (Case, Fair & Oster, 2009 p. 262).If you want to get a full essay, order it on our website: Ordercustompaper.com



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